When Production Exceeds Sales

Multiple Choice

When production exceeds sales,

A) ending inventory under variable costing will exceed ending inventory under absorption costing.
B) ending inventory under absorption costing will exceed ending inventory under variable costing.
C) ending inventory under absorption costing will be equal to ending inventory under variable costing.
D) ending inventory under absorption costing may exceed, be equal to, or be less than ending inventory under variable costing.